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Segment Information
3 Months Ended
Mar. 31, 2015
Segment Reporting [Abstract]  
Segment Information
Segment Information
The Company classifies its operations into two operating segments: National Networks and International and Other. These reportable segments represent strategic business units that are managed separately.
The Company generally allocates all corporate overhead costs to the Company’s two operating segments based upon their proportionate estimated usage of services, including such costs as executive salaries and benefits, costs of maintaining corporate headquarters, facilities and common support functions (such as human resources, legal, finance, tax, accounting, audit, treasury, risk management, strategic planning and information technology) as well as sales support functions and creative and production services.
The Company evaluates segment performance based on several factors, of which the primary financial measure is operating segment adjusted operating cash flow (defined as operating income (loss) before depreciation and amortization, share-based compensation expense or benefit, and restructuring expense or credit). The Company has presented the components that reconcile adjusted operating cash flow to operating income, an accepted GAAP measure and other information as to the continuing operations of the Company’s reportable segments below.
 
Three Months Ended March 31, 2015
 
National
Networks
 
International
and Other
 
Inter-segment
eliminations
 
Consolidated
Revenues, net
 
 
 
 
 
 
 
Advertising
$
260,439

 
$
18,803

 
$

 
$
279,242

Distribution
302,409

 
87,552

 
(521
)
 
389,440

Consolidated revenues, net
$
562,848

 
$
106,355

 
$
(521
)
 
$
668,682

Adjusted operating cash flow
$
253,258

 
$
5,679

 
$
281

 
$
259,218

Depreciation and amortization
(7,361
)
 
(13,166
)
 

 
(20,527
)
Share-based compensation expense
(5,410
)
 
(1,878
)
 

 
(7,288
)
Restructuring expense
(66
)
 
$
(590
)
 
$

 
$
(656
)
Operating income (loss)
$
240,421

 
$
(9,955
)
 
$
281

 
$
230,747

Capital expenditures
$
7,135

 
$
11,113

 
$

 
$
18,248

 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2014
 
National
Networks
 
International
and Other
 
Inter-segment
eliminations
 
Consolidated
Revenues, net
 
 
 
 
 
 
 
Advertising
$
207,903

 
$
8,015

 
$

 
$
215,918

Distribution
240,777

 
68,563

 
(704
)
 
308,636

Consolidated revenues, net
$
448,680

 
$
76,578

 
$
(704
)
 
$
524,554

Adjusted operating cash flow (deficit)
$
177,745

 
$
(11,047
)
 
$
409

 
$
167,107

Depreciation and amortization
(4,907
)
 
(9,487
)
 

 
(14,394
)
Share-based compensation expense
(4,167
)
 
(913
)
 

 
(5,080
)
Operating income (loss)
$
168,671

 
$
(21,447
)
 
$
409

 
$
147,633

Capital expenditures
$
1,177

 
$
5,012

 
$

 
$
6,189


Inter-segment eliminations are primarily revenues recognized by AMC Networks Broadcasting & Technology for transmission revenues recognized from the International and Other operating segment as well as distribution licensing revenues recognized between the National Networks and International and Other segments.
 
Three Months Ended March 31,
 
2015
 
2014
Inter-segment revenues
 
 
 
National Networks
$
(452
)
 
$
(674
)
International and Other
(69
)
 
(30
)
 
$
(521
)
 
$
(704
)

The table below summarizes revenue based on customer location:
 
Three Months Ended March 31,
 
2015
 
2014
Revenue
 
 
 
United States
$
563,825

 
$
449,150

Europe
75,886

 
49,782

Other
28,971

 
25,622

 
$
668,682

 
$
524,554


The table below summarizes property and equipment based on asset location:
 
March 31, 2015
 
December 31, 2014
Property and equipment, net
 
 
 
United States
$
82,743

 
$
79,832

Europe
32,180

 
33,380

Other
19,929

 
20,632

 
$
134,852

 
$
133,844